Canadian credit-card users could face a wave of credit checks, limit reductions and even account closures as issuers fight against a rise of between 5% and 10% in the delinquency rate.

Consumer debt on credit-cards issued by Canadian banks has soared nearly 40% since 2004 on the back of loosened standards, according to accounting giant and advisory firm Deloitte.

Now, it's delinquencies that are rising. The average loss rate of between 3% and 4% has risen by between 50 and 100 basis points, according to the firm's new report, Uncharted Waters for Credit Issuers, released Tuesday.

Deloitte puts the total value of outstanding consumer debt on credit cards at $80-billion, putting as much as $800-million at risk of write-offs in the next year if issuers "fail to take action immediately."

Some institutions have already moved to tighten standards, implement credit limit decreases on some accounts and have halted advertising of low-rate balance transfers.

However, "overall balances for most issuers are staying level or increasing," the report said.

As a result, it suggests banks, credit unions and other financial institutions offering credit cards should increase credit checks on customers.

The report also calls for a "watch list" for accounts with unusually high cash-advance activities, as they "may indicate that cardholder is in financial difficulty."

"There is a high correlation between the percentage of the credit line being used and the likelihood of default."

Other measures include stopping automatic credit limit increases as well as speeding up the process of contacting customers who've failed to make a payment.

The Deloitte authors also suggest the companies "reward those customers who pay bills on time by offering them loyalty points or reducing their interest rates."